Catalent price target raised to $85 from $73 at RBC Capital

RBC Capital analyst Sean Dodge raised the firm’s price target on Catalent to $85 from $73 and keeps an Outperform rating on the shares. The company’s Q2 results should reduce the concerns that had an overhang on the stock as it indicated that the issues from recent FDA inspections have largely been remediated, the analyst tells investors in a research note. Catalent also affirmed its FY23 guidance and gave more visibility into the implied Q4 EBITDA ramp, but while these were encouraging, the stock’s direction from here will likely be driven by M&A news, the firm added.